LatAm Tech Weekly
#181 - Powered by Nasdaq: Tariffs x Tech, Q1 2025 VC figures, deals of the week... and much more!
Weekly writing about what is happening in LatAm tech. By day, I work at Itau BBA advising mid-sized technology companies in their next strategic transaction. By night, I am reading and learning about technology in general (now, with a focus on AI). During the weekends, I’m writing the LatAm Tech Weekly.
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SPECIAL NEWS: After many requests, I’ve decided to launch a Portuguese — and lighter — version of LatAm Tech Weekly today! It’s designed for anyone just starting to explore the tech world or who simply prefers to keep up with the latest news in Portuguese. Just a quick reminder: the original version is still going strong — it’s published every Sunday and available on the Nasdaq website.
This new edition in Portuguese will be AI-translated and adapted in a simpler format. Important: if you already subscribe to the original newsletter, you WON’T be automatically signed up for this new version.
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Happy Sunday!
There’s no way around it—tariffs are no longer just a macro backdrop. They’re hitting every sector, and yes, that includes LatAm Tech. So let’s break down what actually happened.
Tariff Shock: Liberation Day and the End of Frictionless Globalization
April 4th, 2025 — "Liberation Day" — was supposed to mark a pro-growth shift into the Golden Age of AI and investment. Instead, it turned into a true economic turbulence…
What was billed as a celebration of American industrial resurgence quickly spooked markets and startups alike. The S&P 500 futures dropped 6% on the news of sweeping new tariffs. Headlines screamed “10% across the board,” but the reality was even more complex—and consequential.
What Actually Happened?
Minimum 10% tariff on all imports into the U.S.—regardless of origin.
Reciprocal tariffs (up to 54%) targeting countries like China, Taiwan (32%)* (Taiwan president just proposed zero tariffs as basis for US trade talks) , and South Korea (25%).
Auto tariffs: 25% on vehicles from Mexico, Canada, and Germany.
Tech carve-outs: Temporary exemptions for pharmaceuticals and semiconductors, though the latter expires in 2025 (expect 50% chip tariffs soon).
Investment incentives: $6 trillion in new U.S.-based investments (from Apple, Nvidia, OpenAI, SoftBank) to localize supply chains.
By comparison, the U.S. collected $77 billion in tariff revenue in 2024. With the new announcements, that number could soar to over $600 billion annually—a staggering shift in trade dynamics.
Global Implications: Fracturing World Trade
For decades, globalization was the rule of the game. But now, trade ministers—not VCs—are reshaping tech markets:
China, Korea, and Japan are forming a strategic tech bloc to counterbalance U.S. tariffs.
Europe is collaborating with China on trade to protect its own exports.
Early signs show a chilling effect: four major deals have been canceled (three in Europe, one in Asia).
And yet, whether these tariffs are here to stay remains uncertain—and in this climate, uncertainty is a deal killer…
Tariffs and Tech: A Macro Shock Turned Micro
The ripple effect is already here. Startups are facing hard choices—and in some cases, existential ones.
AI, Chips, Deep Tech: Crossfire Zones
AI startups are caught between hardware dependencies and export controls.
GPU prices are rising. Older chips are no longer “cheap from Asia.”
But government subsidies (CHIPS Act, India’s $12.5B plan, EU Chips Act) offer a silver lining.
Hardware Startups: The Pressure Cooker
BOM costs are up 10–34% overnight.
Founders face a harsh dilemma: eat the margin or hike prices.
Even “resilient” supply chains are stressed, with startups rerouting to India, Mexico, or Southeast Asia—often at a cost.
Software Startups: Safe for Now—but Not Immune
Tariffs don’t touch digital products… yet. But customers do.
CIOs are freezing budgets. Renewals will face more scrutiny. Growth multiples are already compressing—software NTM multiples dropped to 4.8x, near 10-year lows.
It is not for me to judge whether this is right or wrong. But I am sure this isn’t just protectionism. It’s a structural realignment. The idea of “global from day one” is fading. In 2025, region-first may become the new default...
On the Global IPO front
The IPO window, which had just started to open, has closed once again—just days after AI company CoreWeave’s underwhelming $23B Nasdaq debut. Institutional investors are pulling back, reassessing the impact of tariffs on their portfolios. With global supply chains in flux, that assessment isn’t straightforward.
Startups in the U.S. that were preparing to go public are now in wait-and-see mode. Many are holding back until the market stabilizes, knowing there's little benefit in launching into a highly uncertain environment.
The pause in IPOs and acquisitions is adding pressure to the entire venture pipeline. Without exits, general partners are struggling to recycle capital, raise new funds, and deploy dry powder with confidence.
It’s not just the tariffs themselves causing hesitation—it’s the uncertainty they’ve introduced. Valuations are becoming harder to pin down, especially with shifting forecasts for inflation and interest rates. Until more clarity emerges, the exit market is likely to stay slow...
What This Means for LatAm—and Brazil
Here’s where things get interesting for Latin America:
As China and the U.S. clash, LatAm is being reevaluated as a neutral, lower-risk trade partner. Thus, it could benefit us.
Mexico becomes increasingly strategic for nearshoring and tariff avoidance—especially in auto and electronics.
Brazil, with its rising AI talent base and local manufacturing potential, could capture supply chain reallocation—if policy makers move fast.
But timing is everything. With U.S. companies pausing European and Asian deals, will they pivot to LatAm?
So far, cautious interest. U.S. trade reps are floating the idea of expanding regional sourcing. But the region needs to prove it can be a scalable alternative—not just a temporary workaround.
For Brazilian founders, the message is clear:
“If you’re building in hardware, AI, or even SaaS—trade policy is now your concern.”
You don’t need to be a tariff target to feel the impact. Customers tightening budgets, supply costs rising, and geopolitical ripple effects mean even digital startups must stay nimble.
Final Word: Founders, It’s Time to Think Like Strategists
Tariffs are no longer just macro headlines. They are balance-sheet events, cap table variables, and go-to-market friction.
Founders who win in this era won’t be the ones with the cleanest roadmap—but the ones who can adjust the wheel mid-storm. For LatAm, this is a moment to show up on the global radar—not just as a user base, but as a reliable production and innovation partner.
Moving on—venture figures for Q1 2025 are out! Can you believe Q1 is already behind us? Let’s take a look at the numbers.
According to Pitchbook’s Q1 2025 Global VC First Look, AI continued to dominate venture activity, with OpenAI’s massive $40 billion raise pushing AI-related deals to over 57.9% of all capital deployed globally. In contrast, non-AI sectors saw a sharp slowdown—Q1 marked the lowest deal count for those companies in over a decade.
Liquidity remains tight. CoreWeave’s IPO alone made up around 26% of total exit value for the quarter. While there’s still time for more listings later this year, rising market volatility is clouding the outlook… See LatAm specific data in the graphs below.
Global VC deal activity
VC deal value by region
Quarterly Exits by Region
General news:
Neon has been authorized to operate as a payment initiator in Brazil’s Open Finance system, simplifying transfers directly from bank accounts. 🇧🇷
Asaas plans to acquire three companies by the end of 2025, following its R$820M funding round led by BOND, SoftBank, and others. The focus is on expanding its portfolio in payments, cards, and credit while keeping operations lean. 🇧🇷
Klu launched a non-bank acquirer and aggregator to tap into Mexico’s fast-growing payment terminal market. 🇲🇽
Argentina saw poverty drop from 52.9% to 38.1% in H2 2024, with inflation falling and household income rising under Milei’s reforms. 🇦🇷
Retail stocks rallied in Brazil, with foreign investors favoring Mercado Livre and locals backing Assaí and Smart Fit. 🇧🇷
Payana is scaling across Latin America with a rebrand and AI-powered finance tools targeting 4,000+ businesses. 🇲🇽
Brazil’s tax burden rose to 32.32% of GDP in 2024, driven by re-taxation, fund levies, and increased consumption. 🇧🇷
Diego Perez has been re-elected as president of ABFintechs and will lead the association through a new phase focused on regulation and ecosystem growth. 🇧🇷
Drivin closed 2024 with 35% global growth, led by Brazil and Colombia, and plans to strengthen its presence in Mexico, Colombia, and Brazil in 2025. 🇨🇱
Liquitech formed a strategic alliance with Kredit Plus to scale electronic factoring and payroll lending. Kredit Plus becomes a shareholder, enhancing Liquitech’s capital and governance capacity. 🇨🇴
General news:
Itaú is developing a Bitcoin withdrawal solution and supporting self-custody options for clients, balancing innovation with compliance. The bank is also exploring the launch of a real-backed stablecoin, citing stablecoins as the key crypto theme for 2025. 🇧🇷
Geti launched operations in Peru to offer AI-powered strategic insights for e-commerce. The Chilean SaaS startup monitors over 15M products daily and plans regional expansion. 🇵🇪
Salvy is adopting a Silicon Valley-style seasonal launch model, starting with the Summer Release 2025. CEO Artur Negrão says the new approach is already driving growth. 🇧🇷
TechFX expects to process R$1.4B in FX transactions in 2025, fueled by remote work and its low-fee, automated cross-border transfer platform. 🇧🇷
ChatGPT gained 1 million users in one hour after launching a Studio Ghibli-inspired image feature, highlighting the explosive growth of generative AI. 🇺🇸
ABECS says the moment is right to integrate credit cards into Brazil’s Open Finance system to expand competition and consumer options. 🇧🇷
Card issuers are exploring how to leverage Brazil’s Pix system for credit, rewards, and new payment models. 🇧🇷
Brubank partnered with Pismo to enhance its credit card experience in Argentina, marking Pismo’s first client in the country. 🇦🇷
Brazil’s Central Bank introduced new BaaS regulations, tightening compliance and driving demand for automation and auditing tools. 🇧🇷
Deals:
Addi secured $70M in new credit from Goldman Sachs and Fasanara Capital to expand its BNPL platform, bringing its total funding lines with both firms to $170M. 🇨🇴
Homelend raised R$50M via a CRI in partnership with RBR Asset to finance prefab homes. The Astella-backed proptech plans 350 projects in 2025 and eyes a new equity round later this year. 🇧🇷
Axeptio acquired Brazilian LGPD compliance platform AdOpt, expanding its footprint in data privacy. The French SaaS group now strengthens its global presence across Brazil, Europe, and Canada. 🇫🇷
OpenAI raised $40B led by SoftBank, doubling its valuation to $300B. It must become for-profit by year-end or risk losing $10B. 🇺🇸
General News:
Start Growth announced a R$15M fund for HRtechs, Fintechs, Edtechs, and Martechs in growth stage, with checks up to R$3M. 🇧🇷
Endeavor unveiled its new Outlier list featuring 34 standout Brazilian companies that have raised R$20B and generated 30,000 jobs. 🇧🇷
Intrag reenters the FIDC market in partnership with fintech Kanastra, signaling stronger fintech-bank collaboration in securitization. 🇧🇷
Onfly appointed Christian Machado as CTO to lead its 150-person tech team and scale its SaaS-enabled travel platform. 🇧🇷
Littio launched Colombia’s first euro savings account with 6% yield, helping users diversify amid currency risk. 🇨🇴
Impesa is preparing to launch in Mexico with its AI-powered expense platform Monibyte, after success across Central America. 🇨🇷
Tap on Phone adoption is expected to surge in Brazil, turning smartphones into payment terminals and expanding financial access. 🇧🇷
Delivery workers may strike again as platforms refuse to negotiate better pay and conditions. A decision will come after an April 9 meeting. 🇧🇷
Binance survey shows 42% of Brazilians invest in crypto—on par with investment funds—driven by return potential and better education. 🇧🇷
Deals:
Tempo raised $4.5M led by Maya Capital to scale its AI-powered personal assistant on WhatsApp. The startup targets high-net-worth users and earns $165K/month. 🇧🇷
Divibank secured $8.2M to grow its payment orchestration platform, aiming to 10x growth by 2025. Divibank Pay is scaling fast with 90% monthly transaction growth. 🇧🇷
EleveCRM received investment from WeDo Tecnologia to expand and pursue future M&A. WeDo may acquire the CRM startup within five years. 🇧🇷
Braze is acquiring OfferFit for R$325M to enhance AI-powered customer personalization and engagement features. 🇺🇸
General news:
Correios will launch its own e-commerce marketplace, Mais Correios, in partnership with Infracommerce, aiming to attract large retailers before opening to SMBs. 🇧🇷
Funcional Health Tech named Amanda Coelho as Corporate Business Director to drive digital innovation in pharmacy-patient retail experiences. 🇧🇷
Gil Torquato was named president of Abranet and will lead digital sector advocacy focused on innovation and regulation. 🇧🇷
BlueBank canceled its planned acquisition of Digimais Bank due to market uncertainty and lack of regulatory submission. 🇧🇷
Plaid postponed its IPO and raised $575M at a reduced $6.1B valuation, down from $13.4B in 2021. 🇺🇸
Sensedia is expanding into Bolivia and Central America in 2025, after strong growth in Chile and Colombia. 🇧🇷
Deals:
Merama raised $215M—$45M in equity and $170M in debt—to expand its consumer brands, including the acquisition of Growth Supplements in Brazil’s sports nutrition market. 🇧🇷
Plug and Play launched a $50M fund to invest in early-stage startups across Latin America, with a strong focus on Brazil. 🇧🇷
JumpStart raised R$2.8M to scale its AI-powered financial services for immigrants, focused on credit access and advisory. 🇧🇷
Plata Card became Latin America’s newest unicorn after raising $160M in a Series A, reaching a $1.5B valuation. 🇲🇽
General news:
Valiu launched a 5.79% high-yield account for SMEs in Mexico, offering daily liquidity and adoption by 97% of existing users within days. 🇲🇽
Brazil’s Central Bank opened a public consultation on regulating digital wallets from Apple and Google, concerned about market dominance in tokenization services. 🇧🇷
Mercado Pago surpassed Stone and PagBank in acquiring profitability, hitting R$1.93B in 2024, driven by strong TPV and growing adoption beyond Mercado Livre. 🇧🇷
Klarna and StubHub paused $1B IPO plans as Trump’s tariffs triggered the worst market week since March 2020, chilling startup exit prospects. 🇺🇸
Colombia plans to tax platforms like Airbnb and Booking under a new reform targeting foreign e-commerce, aiming to formalize the digital economy. 🇨🇴
Deals:
Autograph raised $2.6M in pre-seed funding to build an AI historian platform that records weekly interviews and simulates decision-making through lifelike digital selves. 🇵🇾
I have asked you again on LinkedIn what tech events do you suggest for this year, here is a selection of your responses curated by me for the first half of the year. If you want to see the full list click here.
South Summit
Dates: April 9-11
Location: Porto Alegre, Brazil
Overview: South Summit Brasil is one of the main innovation and technology events in Latin America, bringing together startups, investors, companies and global leaders to foster connections and explore business opportunities. Held annually in Porto Alegre, the event is an extension of the original South Summit, started in Madrid, and highlights the potential of the Brazilian and Latin American innovation ecosystem. With a program that includes lectures, panels and startup competitions, South Summit Brasil promotes the exchange of ideas, drives innovation and puts Brazil on the global technology map.
Brazil at Silicon Valley
Date: April 21-23
Location: Sunnyvale, California
Overview: Brazil at Silicon Valley is an annual conference organized by Brazilian students from Stanford and Berkeley universities, with the aim of connecting the most influential Brazilian leaders and Silicon Valley. Held in California, the event brings together entrepreneurs, investors and academics to discuss the future of innovation and development in Brazil, addressing topics such as technology, sustainability and digital transformation, promoting dialogue between the Brazilian ecosystem and global trends.
INVITE ONLY
Latin American Forum by Riverwood
Dates: April 24-25
Location: Miami
Description: off the record gathering with the main stakeholders, founders, and service providers of the tech ecosystem in Latin America, organized by Riverwood.
INVITE ONLY
Web Summit Rio
Date: April 27-30
Location: Rio de Janeiro, Brazil
Web Summit Rio is the Brazilian edition of one of the largest global technology and innovation events, known for bringing together startups, investors, company leaders and sector enthusiasts. With a program that includes lectures from renowned experts, panels on emerging trends and networking opportunities, Web Summit Rio has established itself as a strategic space to boost ideas, promote partnerships and connect the global innovation ecosystem.
Itau BBA Fifth Annual Tech Summit
Date: May 13
Location: New York
Description: An afternoon in New York with the main founders & funders of LatAm with panels and 1:1 sessions.
INVITE ONLY
APIX
Date: May 15
Location: São Paulo
Description: Over the last decade, APIX has become one of the most anticipated global events focused on APIs and Integrations and its role on business strategies. A dynamic day filled with knowledge sharing and networking for professionals seeking new connections, global trends, partnership opportunities, and valuable technical and business insights regarding Open Finance, Partner Ecosystems, Legacy Modernization and Digital Experiences.
MORE INFO SOON!!!
VTEX Day
Date: June 2-3
Location: São Paulo
Description: Considered one of the largest digital commerce events in the world, VTEX Day brings together big names in retail, including customers, suppliers and influencers, in an environment dedicated to innovation and knowledge. The event is an opportunity to explore solutions, discuss trends, strengthen connections and gain valuable insights to boost business.
FEBRABAN Tech
Date: June 10-12
Location: São Paulo
Description: FEBRABAN Tech is a fundamental event for the financial sector, bringing together banks, fintechs, financial institutions and experts to debate the innovations that are shaping the future of the market. Held annually by the Brazilian Federation of Banks (FEBRABAN), the event reached a record of 55 thousand visitors in 2024.
Others: Canary Summit 2025, H4Results 2025, 16 events by StartSe, DeepTech Days (March), Argentina Tech Week (May)
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